Where did it come from? Where did it go? These are the two principal questions being framed today, after Lord James of Blackheath (a member of the UK House of Lords) unveiled documentation (and accusations) concerning a mounting of illegitimate cash: $15 trillion USD.

At the moment, only Lord James is asking these questions. However, if he gets his way there will be an official inquiry into this massive, money-laundering operation. Already, Lord James possesses documents with the signatures of people like Alan Greenspan and Timothy Geithner on them, as well as massive transfers of funds to virtually every mega-bank in the U.S. and UK.

While Lord James (himself a former banker) is holding the “paper trail” for all of this dirty money, he himself has no firm ideas about either the source of the money nor the intent of all of these massive transfers (all in the $100’s of billions) to U.S. and UK banks. Perhaps I can help him out?

Regular readers will be familiar with some of my own speculation into U.S. money-laundering (and counterfeiting of its own currency). Of interest, my own theorizing was based on a series of logical deductions which implied that some massive money-laundering operation (of counterfeit currency) must be taking place in the dying U.S. economy. And now we have a detailed paper-trail on the largest (known) money-laundering operation in history.

To refresh the memory of regular readers and to inform new readers, back on January 3rd I published a commentary titled “Maximum Fraud in U.S. Treasuries Market”. In that commentary, I outlined a series of simple-yet-obvious deductions pointing out the following facts:

1) There are (virtually) no visible buyers for U.S. Treasuries on the planet (at any price).

2) Even if there were interested buyers, there are no sources of capital available to mop-up all the $trillions in supply being dumped onto the market each year.

3) Even if there actually were interested buyers, and even if they could scrounge the $trillions to buy this worthless paper, it is utterly absurd to suggest that these buyers would pay (by far) the highest prices in history for this paper at a time of maximum supply. It defies every basic principle of supply and demand.

4) Taking this scenario from “absurd” to outright insanity, the U.S. economy has never been less solvent in its entire history. This directly implies that U.S. Treasuries should be fetching the lowest prices in history – not the highest – just like the worthless bonds being flogged by Europe’s deadbeat-debtors.

In other words, by process of simple deduction it was totally obvious that a gigantic, money-laundering operation was being conducted, with the primary goal being to prop-up the totally fraudulent U.S. Treasuries market. All that was missing was a paper-trail to prove this fraud, and now Lord James of Blackheath has been kind enough to provide this.

Undoubtedly many readers will be skeptical of this, assuming that there would be no need to get into such a cloak-and-dagger (and blatantly illegal) process to pretend that worthless U.S. Treasuries still have value. Indeed supposedly these bonds have more “value” than at any time in history – despite the issuer of those IOU’s being hopelessly insolvent, and merely delaying its own bankruptcy.

In fact there is a very powerful reason why this fraud had to be conducted in the same, criminal manner in which the Wall Street crime syndicate launders countless $100’s of billions of dirty money (mostly CIA drug cartel money) every year. The only way in which the Treasuries market could be propped-up in this illegal manner was by counterfeiting the banker-paper used to buy those bonds.

In turn, there are two absolutely compelling reasons why the banksters have been forced to resort to blatant counterfeiting in attempting to prevent their entire paper empire from imploding into nothing. First of all, every fiat-dollar (legitimately) brought into existence is created via inventing new debt. To conjure (another) $15 trillion legally would have required piling $15 trillion more in debts onto the insolvent balance sheets of Western governments. In fact it would only require a small portion of that amount to cause all of these debt-dominoes to immediately topple.

However, that is not the only aspect of utter terror which now grips these felonious financiers. The specter of hyperinflation hovers over these Vampires, a second but even more powerful force which can reduce all of this worthless fiat-paper to its real value (zero) in a matter of months/weeks/days.

As I explained in a separate commentary, it is a tautology of both logic and economics that any good which can be produced at zero cost and in infinite quantities (like the bankers’ paper currencies) is worthless. The logic is irrefutable. If such a good was not worthless, then infinite quantities of that good would/could be created (at zero cost) and then exchanged for any/every item of value on the planet. It would be nothing less than an act of total theft. Indeed, this precisely describes the entire bankster scam known as “fiat currencies”.

Print up ever increasing quantities of their paper, at a lower and lower cost (now zero in the U.S. and Japan), and exchange all of that worthless paper for any/every item of value you can steal. With U.S. dollars now permanently being created at zero cost, the only factor preventing the U.S. dollar from instantly plummeting to zero is that the apathetic dolts in charge of our markets do not yet perceive that U.S. dollars are being created in (effectively) infinite quantities. However, pile another $15 trillion of this worthless paper onto the global market and that perception could change instantly.

I understand that for the average reader the mind simply rebels at the thought of our governments and (supposedly) respectable leaders of business demonstrating themselves to be no different (at all) from a Mafia crime family. So let me once again summarize these parameters altogether:

a) There are no buyers for the $trillions of U.S. Treasuries (i.e. no one wants this paper), and especially not at the highest prices in history.

b) There are no sources of (legitimate) capital to finance the purchases of these $trillions.

c) The U.S. government is so close to outright financial collapse that it cannot afford to pay any interest on its massive debts. An increase of U.S. interest rates by even 1% would send the U.S. economy into an immediate, deflationary death-spiral (as I have explained in many previous commentaries).

d) Debt-saturated Western government balance sheets cannot tolerate any further large increases in debt without a series of domino-like debt defaults.

e) Because of the factors above, the only way to prop-up the Treasuries market (and fraudulently maintain prices at the highest levels in history) was to create a mountain of unofficial/illegitimate money (i.e. counterfeit it), and then use that unofficial currency to buy these worthless Treasuries.

For those clinging to the belief that there must be some rational/legitimate explanation for the paper-trail uncovered by Lord James, he dispels that with some further observations of his own. To begin with, there are concrete financial protocols which have been created to integrate any/every new large batch of the bankers’ fiat paper into global financial markets. None of those protocols was followed.

Along the way with this scam, Lord James also pointed out that $100’s of billions in profits were generated, with none of those profits ever being recorded let alone reported (and taxed). In short, this is every bit as illegal as the $100’s of billions in heroin-trade profits laundered by Wall Street each year – from the poppy fields of Afghanistan. For those pointing out that the fraudulent U.S. Treasuries market hasn’t (yet) required $15 trillion in funny-money to extend this Ponzi-scheme, obviously the banksters can come up with plenty of other uses for their counterfeited/laundered money.

Where do people think that the Plunge Protection Team comes up with its own capital for its daily manipulations of U.S. markets?

Ultra-leveraged Wall Street balance sheets (greater than 30:1) only required a drop in U.S. housing prices of 3% to take their entire paper empires to zero. U.S. housing prices have fallen more than ten times that far. We can only guess at how $trillions (in secret hand-outs) it has taken to delay the implosion of those fraud-factories even this long.

This also explains the fanatical desperation which the Federal Reserve has shown in fighting even the tiniest request for disclosure about its “lending operations”. When you’re secretly counterfeiting $trillions every year, the last thing you want to hear is anything that even faintly resembles the word “audit”.

The U.S. Treasuries market is nothing but a gigantic (and clumsy) fraud. Along with the motive which I have previously supplied for this fraud, Lord James of Blackheath has added “means” and “opportunity” through his own diligent investigations. If the Rule of Law was not already dead in the United States, there is more than enough evidence here to justify a formal (and public) inquiry. Don’t hold your breath!